Here’s The Face of Opportunity

Implications: Staggering numbers are presented here.  Seniors increasing from almost 5 million to 11 million in 30 years, critical shortages of skilled/professional labor with 1/3 of California’s high school students not graduating, and unparalleled diversity in a huge population. 

Analysis: Solving the housing/real estate needs of this group not only here but throughout the U.S. over the next fifty years will be a challenge.    Assuming that the production of this housing is the rote part of the production needed, the problem will be the money to get there.  Or rather, the production, assembly and funding of the money. 
Further, now that it’s pretty much established that the take home ticket for the average American will retreat to approximate more closely that of the rest of the world in the next 50, the financing will have to be accomplished in the face of affordability ratios that will prevent money from having any real value.  Our recent history might indicate that financial brute force will not be the answer.  You can ask Countrywide, Washington Mutual, Citigroup, Bear Stearns and others how that happens.  
You might look to the mid-tier banks in the U.S. as the solution.  Local management and underwriting might produce better default ratios.  International distribution through a new Wall Street with a higher participation requirement on the part of both the institution and the borrower may make for a more wholesome market.  Certainly that might produce a more concerned Wall Street banker with his/her exit only profit participation and the American consumer with his/her in your face you made it/you eat it foreclosure attitude.   Let’s see how it plays out.  The mid-tier results even now are OK to good to great and have more concerned management with a closer tie to the business and consumer client.  We’ll see if they can grow the business plans in the face of the next great opportunity.